Seniors Housing Weekly Update - Senior Housing And Care Acquisition Market Stays Strong

October 16, 2012


 

October 16, 2012. 60 Seconds with Steve Monroe. Third quarter M&A activity outpaces the second quarter and last year's third quarter transaction volume.

Senior Housing And Care Acquisition Market Stays Strong

We all think of 2011 as a banner year for the senior housing and care M&A market. Transaction volume was up, dollar volume was way up as a result of the higher level of REIT activity.  It looked like the market might run out of steam. Think again. In this year’s third quarter, there were 52 announced deals, up 44% from the second quarter and up 21% from last year’s third quarter. For the full nine months of 2012, deal activity is just edging out 2011 with 130 transactions compared with 127, but we are sure the 2012 number will rise a bit when as yet undiscovered sales find their way into my in-box. Dollar volume, of course, is way down this year, but remove the large REIT deals from both years and we have a very different story. The point is that beyond the REITs, acquisition demand is as strong as it has ever been, and with borrowing costs at historic lows, valuations still have room to move up, which will bring even more sellers to the market.

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